An investment in Pandox’s shares involves various risks. A number of factors affect, or could affect, Pandox’s business, both directly and indirectly.

Risks related to Pandox's operations

Pandox’s business and market are subject to certain risks which are completely or partly outside the control of Pandox and which could affect Pandox’s business, financial condition and results of operations. Prior to any investment decision, it is important to carefully analyse the risk factors considered to be material to Pandox’s future development. These risk factors include, among others, the main following sector risks and risks related to the operations:

(1) The value of Pandox’s assets is exposed to macroeconomic fluctuations and the liquidity in the property market could decline.

(2) In its business, Pandox is subject to risks related to repositioning and transforming hotel properties.

(3) Pandox’s costs of maintaining, replacing and improving its current properties could be higher than expected.

(4) Pandox might be unable to identify and acquire suitable hotel properties.

(5) Pandox may from time to time carry out acquisitions of new hotel properties, all of which are subject to risks.

(6) Pandox may be unable to retain, and recruit, key personnel in the future.

(7) Pandox depends on external operators’ reputation, brand, ability to run their businesses successfully and financial condition.

(8) Pandox is exposed to environmental risks.

(9) Pandox is affected by interest rate fluctuations.

(10) Pandox is exposed to the risk of being unable to refinance its facility agreements when they fall due.

(11) Pandox is subject to certain risks common to the hotel industry, which are beyond the company’s control.

(12) The hotel industry is characterised by intense competition and Pandox may be unable to compete effectively in the future.

(13) New business models may enter the hotel industry.

(14) The growth of OTAs (online travel agencies) could materially and adversely affect Pandox’s business and profitability.